Richmond’s mayor wants to trim the city real estate tax rate from $1.20 to $1.19 per $100 of assessed value, according to Richmond BizSense on Nov. 10, 2026. On a home assessed at $400,000, that one cent is $40 a year by our own arithmetic. Nothing is final: the mayor plans to bring a budget with the cut in March, and City Council decides.
If you are shopping in the City of Richmond in places like The Fan, Church Hill or Scott’s Addition, here is what is on the table and what it does to a monthly payment.
What City Hall is weighing
| Item | Now | Proposed |
|---|---|---|
| Real estate tax, per $100 assessed (mayor) | $1.20 | $1.19 |
| Real estate tax, per $100 assessed (three council members) | $1.20 | $1.16 |
| Meals tax | 7.5% | 6.5% |
| Sales tax increase approved by voters | none | 1 point, about 68% yes |
| Projected city budget gap, 2027 | about $17 million | about $21 million with the real estate cut |
Source: Richmond BizSense, Nov. 10, 2026. The city estimates the new sales tax at about $47 million a year, earmarked for Richmond Public Schools capital projects. It still needs council approval and could start as soon as July 2027.
What a cent changes on your tax bill
The rate applies to the city’s assessed value, not your purchase price. These figures are our arithmetic on example assessments, using the rates above.
| Assessed value | At $1.20 | At $1.19 | At $1.16 |
|---|---|---|---|
| $300,000 | $3,600 | $3,570 | $3,480 |
| $400,000 | $4,800 | $4,760 | $4,640 |
| $500,000 | $6,000 | $5,950 | $5,800 |
So the mayor’s version saves $30 to $50 a year on those assessments. The $1.16 version saves $120 to $200. Either way, your assessed value moves the bill more than a one-cent rate change. The city’s Assessor of Real Estate page links to its property search and appeal process.
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Why the city is doing this now
Voters approved the sales tax last week. The mayor’s summer plan paired that increase with lower meals and real estate taxes. The city’s chief administrative officer told council the city faces pressure from commitments coming due this year, and BizSense lists personnel costs, economic headwinds and repairs to the John Marshall Courts Building. A hiring freeze begins Nov. 16, and department heads were asked for cuts of up to 10%.
What is still open
- Council passed a resolution in February asking for side-by-side budgets at $1.20 and $1.16. The chief administrative officer said a $1.16 rate would require reducing the city workforce.
- The meals tax cut has begun the legislative process, but no effective date is set.
- The sales tax has no start date until council approves it.
How to use this in your budget
Plan on the current $1.20 rate until council adopts something else. Run your numbers in our mortgage calculator, and ask a lender from our preferred lenders which tax rate their estimate used. If you are weighing loan options, our guide to FHA loan limits for Richmond-area buyers covers one path, and what to know before signing a buyer representation agreement covers the paperwork. The buy with us page lays out the steps.
Watching Richmond homes before the March budget?
A saved search keeps new City of Richmond listings in front of you while the rate debate plays out.
Frequently asked questions
When could the lower rate start?
BizSense reports the mayor plans to introduce a budget in March that includes the one-cent real estate cut. The article gives no effective date for the meals tax, and the sales tax could begin as soon as July 2027 if council approves it.
Does the new sales tax apply to groceries?
No. BizSense reports the 1 point increase exempts groceries, certain hygiene products and prescription medicines.
Where would the sales tax money go?
The city estimates about $47 million a year, earmarked for Richmond Public Schools capital projects, per BizSense on Nov. 10, 2026. Richmond Public Schools is developing a Facilities Modernization Plan to guide that spending.
Why does the city have a budget gap?
BizSense reports a gap of about $17 million heading into 2027, growing to about $21 million with the real estate cut. Cited causes are economic headwinds, personnel costs and repairs to the John Marshall Courts Building.
How do I check my assessed value?
The city’s Assessor of Real Estate page at rva.gov/assessor-real-estate links to a property search and an appeal process.
Is the meals tax cut the first in a while?
BizSense says it would be the first reduction in nearly a decade. The rate rose from 6% to 7.5% in 2018, also to fund Richmond Public Schools facilities.
